Taking a more strategic approach to new products and portfolio management will yield a 50 percent increase in returns on R&D.PRTM

Your product portfolio isn’t performing. The sales and channel teams are wrestling with too many offers with too little differentiation. You are sure some products are draining growth and profitability. But you don’t know how many or which ones are the culprits.

Boost Growth and Profitability

Careful evaluation and optimization of under-performing portfolios will increase both revenue and profitability. Catalyst Strategies portfolio optimization does just that. We employ a thorough, criteria-based product rationalization process, taking into account elements such as company core competencies, cross-offer interdependencies, brand equity, operational capacity, and change implications.

Our services range from a one-time portfolio rationalization exercise to building product management competencies based on best practices in:

Development and commercialization of new products and services

Existing product management, including how to maintain, enhance, refine, or repositioning products to maximize value

Effective Product Portfolio Rationalization

Catalyst Strategies’ rigorous portfolio rationalization process starts with an in-depth review of the current performance of each product or service. We then dive into target markets and needs gaps, competitive climate, market size, growth, and dynamics. We incorporate a clear understanding of the company’s competencies, existing portfolio, and brand equity. Based on these insights, and in collaboration with the client team, we offer recommendations based on criteria such as:

Alignment with brand and other portfolios

Fully-loaded product contributions, total and margin, averages and trends

Quantities sold and sales trends

Sales force or channel share of mind

Ancillary product revenues

Competitive ratings

Satisfaction ratings

Service levels and issues Improvement opportunities with high-level costs

Cross-product cannibalization

Concurrently, we work closely with product management teams to define or refine their portfolio management process and incorporate the best practices we use in the optimization process. Our process recommendations are designed to fit the existing culture, structure, and governance of the organization.

Fact-Based Approach

To ensure positive outcomes, Catalyst Strategies portfolio optimization approach is fact-based, relevant, and collaborative. We model likely market outcomes, assess the interdependencies of products and services, and predict the financial impacts of adding, eliminating or changing products. We build recommendations on robust business cases to ensure buy-in and follow through.

Catalyst Strategies uses proven methodologies to drive portfolio performance improvement. Often we work simultaneously on cleaning up the existing portfolio while improving the overall portfolio management process.